Independent Auditors’ Report to the Members of OSIM International LtdOpinionIn our opinion,(i)(ii)the consolidated financial statements of the Group and the balance sheet and statement of changes in equity of the Company areproperly drawn up in accordance with the provisions of the Singapore Companies Act, Cap. 50 (the “Act”) and Singapore FinancialReporting Standards so as to give a true and fair view of the state of affairs of the Group and of the Company as at 31 December 2006and the results, changes in equity and cash flows of the Group and the changes in equity of the Company for the year ended on thatdate; andthe accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporated in Singaporeof which we are the auditors have been properly kept in accordance with the provisions of the Act.ERNST & YOUNGCertifi ed Public AccountantsSingapore26 March 2007Independant Auditors’ Report 73Annual Report 2006
Balance Sheetsas at 31 December 2006Note Group Company2006 2005 2006 2005$’000 $’000 $’000 $’000(Restated)Equity attributable to equity holders of the CompanyShare capital 3 42,501 22,449 42,501 22,449Share premium – 18,046 – 18,046Accumulated profi ts 145,947 124,035 111,266 90,336Enterprise expansion funds 4 545 545 – –Capital reserves 5 1,401 1,446 765 1,164Hedging reserve 6 (1,394) (3,236) (1,394) (3,073)Revaluation reserve 7 5,237 5,237 – –Premium on purchase of minority interests’ shares 8 (7,033) (965) – –Foreign currency translation reserve 9 (17,082) (1,177) – –170,122 166,380 153,138 128,922Minority interests 6,217 7,436 – –Total equity 176,339 173,816 153,138 128,922Non-current assetsFixed assets 10 49,038 42,136 13,249 13,182Subsidiaries 11 – – 78,118 59,763Associated companies and a joint venture 12 140,738 166,037 146,473 146,829Intangible assets 13 39,845 39,142 84 123Long-term investment 14 930 – 930 –Long-term receivables 15 10,619 7,618 1,915 1,545Deferred tax assets 35 4,910 3,281 – –246,080 258,214 240,769 221,442Current assetsLoans to associated companies 16 510 – 510 –Stocks 17 91,658 71,545 17,286 15,577Trade debtors 18 39,625 36,262 9,402 8,959Other debtors and deposits 19 6,167 6,858 2,435 1,837Prepaid operating expenses 2,910 3,263 1,060 1,003Due from subsidiaries (trade) 20 – – 12,857 21,598Due from subsidiaries (non-trade) 20 – – 3,032 3,167Due from affi liated companies (trade) 20 1,074 15,383 – 2,315Due from affi liated companies (non-trade) 20 1 397 1 255Due from associated companies (trade) 20 410 6,047 396 1,842Due from associated companies (non-trade) 20 704 457 692 156Due from joint venture (trade) 20 871 4,539 871 4,539Fixed deposits 21 5,719 31,046 5,100 29,558Cash and bank balances 21 24,047 27,889 8,041 9,223173,696 203,686 61,683 100,029The accompanying accounting policies and explanatory notes form an integral part of the fi nancial statements.Balance Sheets 74Annual Report 2006